Conventional technical analysis teaches how support turns into resistance and resistance turns into support (you can find more on that here). What is also true, and more significant for me as supply and demand trader, is that supply can turn into demand and demand can turn into supply. Where this occurs we have a swap…

An engulf is simply price action that breaks a significant level. We are interested in engulfs of supply and demand levels to confirm if higher timeframe levels will hold, and to identify possible changes in direction. This type of price action is particularly useful for those who don’t want to touch trade with limit orders…

This describes a particular type of price action where price swings up and down absorbing supply and demand levels as it goes. It’s important to understand what exactly is happening here so that when this price action develops we know how we can react to it.